Combined heat and power (CHP)

DEFINITION: Combined heat and power (CHP) is a form of onsite electricity generation which provides a combination of heat and power.

A CHP plant converts a single fuel into both electricity and heat in a single process. Significantly, the heat is captured and can then be ‘recycled’ for space heating, cooling, domestic hot water and industrial processes. This makes CHP much more energy and cost-efficient than traditional coal and gas-fired power stations, where vast amounts of the heat produced through the electricity generation process is wasted.

CHP has become a well-proven technology across the world and is recognised as a viable alternative to centralised energy generation, and around 2,000 factories and businesses across the UK have so far adopted the technology.